Sydney, Dec 23, 2006 (ABN Newswire) - Alliance Resources (ASX: AGS) has been advised by Quasar that the mineral resource estimate for the high-grade part of Four Mile West, originally scheduled for completion in the December quarter, has been re-scheduled to early in the new year due to a delay in receiving further chemical analyses from ANSTO and to complete the data verification process.

High-grade equivalent uranium intersections (gamma only) intersected at Four Mile West prospect:

- 2.5 metres grading 0.34% eU3O8

- 1.5 metres grading 0.23% eU3O8

(eU3O8 refers to the equivalent U3O8 grade as estimated from gamma logging)

Exploration drilling will recommence in January 2007.

Details of Announcement

The Directors of Alliance Resources Limited ("Alliance") (ASX Code: AGS) are pleased to announce an exploration update and preliminary drilling results for November 2006 provided by joint venture partner and operator Quasar Resources Pty Ltd ("Quasar") at the Beverley 4 Mile Uranium Prospect ("Four Mile") in South Australia.

It is emphasised that the results may be subject to revision once the geophysical logs are made available to Alliance, however the Directors of Alliance considered it necessary to release these preliminary results due to the materiality of the announcement.

Summary

Exploration during November saw the completion of eight (8) rotary mud holes for 911m. These included seven (7) holes at Four Mile South and one (1) water well at Four Mile West. No significant mineralisation was intersected at Four Mile South.

Exploration drilling on will recommence in January 2007.


Four Mile West

One (1) water well (AKMW003) was completed at Four Mile West during the month, bringing the total now to three (3) for the area (Figure 1). This hole intersected 2.5m @ 0.34% eU3O8 and 1.5m @ 0.23% eU3O8 (Table 1). The well was cased with 4 inch PVC and screened in the mineralised interval from 149-151m. There is one remaining 4 inch well to be drilled (AKMW004), and when completed all four (4) wells will be setup with piezometers for hydrological monitoring. The two (2) 6 inch wells planned for Four Mile West will be completed early next year.

A 400 litre water sample was collected from AKMW002 and is awaiting clearance before it can be sent off site to ANSTO. The sample will be used in the leach testing of core samples submitted to ANSTO earlier in the year.

The limited availability of the Prompt Fission Neutron (PFN) tool has meant that there are still a large number of mineralized holes without PFN data. It is anticipated that these holes will be washed out and logged as the rigs and PFN tools become available.

Quasar advises that the mineral resource estimate for the high-grade part of Four Mile West, originally scheduled for completion in the December quarter, has been re-scheduled to early in the new year due to a delay in receiving further chemical analyses from ANSTO and to complete the data verification process.

Regional

Drilling continued at Four Mile South to follow up anomalous gamma results encountered in historical drilling. Seven (7) holes were completed, but no significant mineralization was intersected (Figure 1). Weakly anomalous gamma was intersected within basement in hole AK226.